Jozi Angels calls on corporate employees to become part of the startup ecosystem
The role of corporates in the startup ecosystem is not new. They help drive the growth of startups and boost innovation. Corporate Venture Capital (CVC) is one of the various ways that corporates go about engaging with the startup space and involves investment of corporate funds in to young game changers. This strategy is fast entrenching itself globally, playing a key role in the development and success of international startups.
Abu Bakr Cassim of JoziAngels. Photograph: John Hogg
Not many have adopted this strategy locally though, with little CVC implementation in its purest form. Abu Cassim, founder and director of Jozi Angels, an angel network that facilitates and helps startups grow, says that while CVCs are a viable option in South Africa there’s also a role for the corporate individual to play.
“While I believe in CVCs, the Jozi Angels’ Entrepreneur Energizer programme encourages employees within corporate organisations to become angel investors. Leveraging their knowledge, networks and capital to get involved in exciting young upstarts without disrupting their day to day activities as an employee. They then become the champions that drive an organisation’s entrepreneurial culture. There’s a need in modern organisations to be innovative and entrepreneurial, our programme gives employees the hands-on experience needed in today’s economy,” says Cassim.
The Jozi Angels’ Entrepreneur Energizer programme is an immersion exercise. It starts with a two-day sprint covering topics such as design thinking and lean startup methodologies. Participants are then mentored by experienced angels along their journey.
According to Cassim, individuals within corporates can become a working part of the country’s drive to grow entrepreneurship and boost innovation: “It’s a mindset we need to introduce that they can work for a great company and then invest in an exciting young business, which is reshaping our landscape. Investment still tends to be made in traditional asset classes such as property and mutual funds.”
He says that in today’s economy, disruptors are key, bringing even more excitement to potential angels: “Exposure to disruption is addictive and exhilarating. Supporting this development brings not only financial benefits, but also an opportunity to be part of some ground-breaking business and technology breakthroughs.”
There is also the learning curve and individual angels will be exposed to new business models, gain greater market knowledge and build relationships with innovative startups. Cassim does advise though that potential angels need to be vigilant in what they invest in to, which is where Jozi Angels and network mentors can play a guiding role.
“We facilitate and help grow the startup ecosystem and excited about the potential of the angel space. We have a proven screening process, ensuring that investments are thoroughly assessed. South Africa needs a broad variety of angels and we are confident that by creating a breadth and depth of investors, startups and corporates will flourish,” says Cassim.
About Jozi Angels
Jozi Angels is an angel network based in Johannesburg, South Africa. They exist to grow the startup ecosystem and facilitate the growth of innovative startups. Through their broader network they have sourced the hottest startups and facilitated several investments. Their members are approved investors serious about providing capital and coaching to early stage companies.
Their mission is to further develop the startup ecosystem through investment, events and education. They facilitate investments in to startups that suit the investor’s professional background while at the same time supporting South Africa’s emergent innovation economy.
Aggregating resources and knowledge through a group they are able to make larger investments and diversify risk. It also allows for more effective deal sourcing and screening. Apart from this, there are intangible benefits such as camaraderie and goal sharing. They operate in a sexy space, investors get ‘hands-on’ in exciting opportunities that may become the next big thing!